Calculate the elasticity of demand for the price interval

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Reference no: EM133127001

This is the demand and supply for iPad Minis. 

Price

Quantity Demanded

Quantity Supplied

$900

700

1000

$750

750

900

$600

800

800

$450

850

700

$300

900

600

a) Calculate the elasticity of demand for the price interval ($300 to $450) and for the price interval ($450 to $600). (show your calculations)

b) "One way for the Federal government to increase the use of these to 900 units would be to impose a price ceiling of $750 for iPad Minis." TRUE or FALSE and Explain.

Reference no: EM133127001

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